OREANDA-NEWS. Asbury Automotive Group, Inc., one of the largest automotive retail and service companies in the U.S., today reported net income for the second quarter 2016 of $36.7 million, or $1.65 per diluted share, compared to $41.1 million, or $1.52 per diluted share in the prior year quarter, a 9% increase per diluted share. Total revenue for the second quarter was $1.6 billion, down 4% from the prior year period principally attributable to strategic divestitures during the second half of 2015; total revenue on a same store basis was down 1% from the prior year period.

Second Quarter 2016 Operational Summary (compared to the prior year period on a same store basis unless otherwise stated):

  • Total revenues decreased 1%; gross profit up 1%
  • New vehicle revenue down 1%; gross profit down 5%
  • Used vehicle retail revenue down 4%; gross profit up 1%
  • Finance and insurance revenue per vehicle up 3% to $1,436
  • Parts and service revenue up 6%; gross profit up 4%
  • Parts and service customer pay gross profit up 8%
  • SG&A expense as a percentage of gross profit was up 140 basis points to 68.3%
  • Total company income from operations as a percentage of revenue was 4.8%

Strategic Highlights:

  • Repurchased $60 million of common stock in Q2 2016
  • Opened a new Q auto store in the greater Tampa, FL area

"Despite a challenging retail environment, our improved used margins, strong parts and service customer pay performance, and capital deployment enabled us to deliver 9% EPS growth," said Craig Monaghan, Asbury's President and Chief Executive Officer.

"We continue to grow our front end yield, which is up approximately $100 per vehicle from the low in the second quarter of 2015," said Asbury's Executive Vice President and Chief Operating Officer, David Hult. "This was a direct result of our team's strong performance, increasing used vehicle margins and continuing gains in F&I."

For the six-month period ended June 30, 2016, the Company reported net income of $67.7 million, or $2.91 per diluted share, compared to net income of $77.0 million, or $2.82 per diluted share in the prior year period.

Asbury Automotive Group, Inc. ("Asbury"), a Fortune 500 company headquartered in Duluth, Georgia, a suburb of Atlanta, is one of the largest automotive retailers in the U.S.  Built through a combination of organic growth and a series of strategic acquisitions, Asbury operated 82 dealership locations, encompassing 99 new vehicle franchises for the sale and servicing of 28 domestic and foreign brands as of June 30, 2016.  In addition, we owned and operated three stand-alone used vehicle stores under the "Q auto" brand name in Florida.   We also operated 25 collision repair centers in our local markets.  Asbury offers customers an extensive range of automotive products and services, including new and used vehicle sales and related financing and insurance, vehicle maintenance and repair services, replacement parts and service contracts.